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Regional Integration and Knowledge Flows: Effect on Manufacturing Productivity in Southern Africa

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Innovation, Regional Integration, and Development in Africa

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Abstract

The tacit nature of technological knowledge often renders face-to-face interactions a necessity for technology to diffuse because knowledge circulates best locally (Kesidou and Szirmai 2008). It is through those interactions that tacit knowledge can be translated into explicit, usable new knowledge. This explains why geographic proximity is important for technological learning by facilitating direct interactions and knowledge diffusion. Thanks to its impressive diamond deposits and its geographical proximity with the South African economy, Botswana is thus well poised to benefit from mastering and applying technologies that already exist in its southern neighbour. Botswana’s geographic and economic proximity with South Africa is thus one of its most important winning cards for a successful technological catch-up and long term-growth.

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Notes

  1. 1.

    Barba Navaretti and Tarr (2000) provide a detailed review of the various theoretical models that conceptualise how trade and their interactions affect knowledge diffusion, together with the corresponding empirical evidence.

  2. 2.

    Alternative lists of NSI functions have been suggested by Rickne (2001); Johnson and Jacobsson (2001); Liu and White (2001); Jacobson et al. (2004) and Hekkert et al. (2005), but all share the same core functions and attributes.

  3. 3.

    Nonetheless, some scholars, like Alden and Soko, have alleged that South African companies operate like sub-imperial agents as they care less for backward integration or growing local capabilities of indigenous companies.

  4. 4.

    Some authors have argued that South Africa benefits more from this Custom Union than other members and that some of the initiatives that could have deepen further regional integration in the subregion have been frustrated by the country.

  5. 5.

    Its major strengths include its physical and economic infrastructure, natural mineral and metal resources, a growing manufacturing sector, and strong growth potential in the tourism, higher value-added manufacturing, and service industries.

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Authors and Affiliations

  1. Human Sciences Research Council, Cape Town, South Africa

    Alexis Habiyaremye

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  1. Alexis Habiyaremye
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Correspondence to Alexis Habiyaremye .

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Editors and Affiliations

  1. Thabo Mbeki African Leadership Institute, University of South Africa, Pretoria, South Africa

    Samuel Ojo Oloruntoba

  2. Tshwane University of Technology, Pretoria, South Africa

    Mammo Muchie

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Habiyaremye, A. (2019). Regional Integration and Knowledge Flows: Effect on Manufacturing Productivity in Southern Africa. In: Oloruntoba, S.O., Muchie, M. (eds) Innovation, Regional Integration, and Development in Africa. Advances in African Economic, Social and Political Development. Springer, Cham. https://doi.org/10.1007/978-3-319-92180-8_14

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